The U.S. food-processing and commodities-trading corporation Archer Daniels Midland Co (ADM) has reached an agreement to sell a 50 percent stake in its export terminal in Barcarena, in the northern Brazilian state of Pará, to Glencore.
The ADM-Glencore joint venture that will own and operate the facility following the transaction also plans to quadruple the terminal’s capacity from 1.5 million metric tons to 6 million metric tons.
In addition to its increased capacity, the upgraded terminal will be able to handle larger Panamax vessels, allowing the joint venture partners to connect global markets more efficiently.
”Agricultural production is expanding rapidly in northern and western Brazil, and the Barcarena terminal is very well positioned to capitalize on that growth. By quadrupling that terminal’s capacity, we are also expanding our ability to serve growers here in Brazil, and meet customer needs here as well as in Europe, Asia and other key global markets,” said Valmor Schaffer, president, ADM South America.
The transaction, which is contingent on regulatory approvals, is expected to close during the first half of this year.